Saudi Oger, a Riyadh-based construction company, is expected to declare bankruptcy to overcome its financial problems, reported the Saudi Gazette.
The company was not able to pay salaries and renew medical insurance for 20,000 employees for eight months as a result of the its failure to pay medical insurance companies.
“The problem is not only with medical insurance, but also with the end of service benefits. Some employees are entitled to more than SR500,000,” a source told the Saudi Gazette.
Economists also mentioned that Oger was also unable to pay fees for theGeneral Organization for Social Insurance (GOSI). Bankruptcy was posted as the only resolution to overcome financial troubles.
Adnan Khoja, a member for the insurance committee at the Jeddah Chamber of Commerce and Industry (JCCI), stated that the company can get out of financial commitment by declaring bankruptcy, according to Arabian Business.
About 30,000 employees working for Oger have filed complaints with the Labor Office because they did not receive their salaries last week, stated Arabian Business quoted from Arab news.